Charitable Gift Annuities
You have undoubtedly read at least one moving story about a donation to a local hospital by a grateful patient, family member, or friend. No matter the size of the gift, each of these stories is significant. What you may not know is that you yourself may be in a position to make a significant gift to Capital Health and receive guaranteed income for the remainder of your life and, if you so choose, that of your beneficiary's.
Through a charitable gift annuity, you may transfer an asset such as cash, stock, or some other property to Capital Health. The Capital Health Development Office will then invest that asset and pay you a steady and fixed income. Regardless of interest rates or the stock market's performance, your payments are contractually guaranteed.
This steady stream of income, the income tax deduction associated with your contribution, the possibility of avoiding capital gains, and the rate offered by charitable gift annuities—generally higher than the current CD rate—combine to make a charitable gift annuity a convenient and tax-wise way to make a significant gift to Capital Health.
How Does it Work
Charitable Lead Trusts
A Charitable Lead Trust pays Capital Health an income for a period of years before you or your heirs receive the trust remainder. This type of trust enables you to pass assets to your heirs intact at a reduced cost. In addition, it provides gift or estate tax savings for the value of the payments made to the Capital Health Foundation.
By establishing a Charitable Lead Trust with Capital Health, as the beneficiary, you will be recognized for your generosity through the Heritage Society.
A gift of an old or new life insurance policy with Capital Health named as beneficiary and owner, enables you to ensure the work of Capital Health. Many of the policies that are typically donated to a charity are those that have been taken out by parents for their children and transferred to Capital Health when the children become independent.
Gifts of life insurance provide an immediate income tax deduction for the gift's value, plus possible estate tax savings while enabling you to make a significant gift with little expenditure.
By establishing Capital Health as the beneficiary of your insurance policy, you will be recognized for your generosity through the Heritage Society.
A Living Trust is a trust you establish to take effect during your lifetime. Terms of the trust can be changed at any time and enable you to enjoy possible savings in estate taxes if Capital Health is the beneficiary of the trust remainder.
By establishing Capital Health as the beneficiary of your Living Trust, you will be recognized for your generosity through the Heritage Society.
A donation of real property, either in full or with a retained life interest, offers many benefits. These include an immediate income tax deduction for the charitable value of the gift, and no capital gains tax. A gift of real estate also can allow you to live in your home and still receive a charitable deduction.
A donation of real estate to Capital Health enables you to be recognized through the Capital Fund and Heritage Society.
By naming Capital Health as the remainder beneficiary of your retirement plan, you will be supporting our mission to provide a comprehensive range of medical treatment. In addition, you will avoid tax on "income in respect of a decedent" as well as estate tax on the plan. A gift of your retirement plan preserves the plan's value and allows you to leave heirs less costly bequests.
A gift of your retirement plan to Capital Health enables you to be recognized through the Heritage Society.
Wills and Bequests
A bequest is a gift you make by naming Capital Health in your will. The bequest may leave a specific amount, all, a portion of your estate, or the residuary of your estate to Capital Health. By making a bequest in your will, you will benefit from an estate tax deduction for the value of the bequest.
By naming Capital Health in your will, you will be recognized for your generosity through the Heritage Society.
You may also include Capital Health in your will by adding a codicil or amendment to your current will. This is a simple and inexpensive change. Please consult your attorney if this type of gift is of interest. We would be pleased to provide your advisor with a sample of the wording that is preferred.
How can I learn more?
A member of the Capital Health Development Office staff will be happy to talk with you about the benefits of a charitable gift annuity. Complimentary personalized illustrations may be prepared by the Capital Health Development Office for your review and consideration. Please contact:
Capital Health Development Office
This information is provided as an educational overview and should not be construed as financial planning or tax advice.